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Optiva Inc (TSE:OPT)
TSX:OPT

Optiva Inc (OPT) AI Stock Analysis

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Optiva Inc

(TSX:OPT)

Rating:45Neutral
Price Target:
C$0.50
▼(-25.37%Downside)
Optiva Inc's overall stock score is primarily impacted by its weak financial performance and valuation, reflecting significant challenges in profitability and financial health. While there are positive signals from recent corporate events, they are insufficient to offset the broader financial and technical weaknesses.

Optiva Inc (OPT) vs. iShares MSCI Canada ETF (EWC)

Optiva Inc Business Overview & Revenue Model

Company DescriptionOptiva Inc. provides cloud-native monetization and revenue management software to communication service providers (CSP) in Europe, the Middle East, Africa, North America, Latin America, the Caribbean, Asia, and the Pacific Rim. The company's monetization products enable real-time charging, rating, billing, product catalog, policy management, and customer care for any digital services of a CSP. Its solutions include Optiva Charging Engine, a convergent charging solution that helps CSPs to monetize platform; Optiva Business Support System Platform, an end-to-end cloud native converged charging and billing solutions on the private and public cloud; Policy Control, a data monetization for real-time applications, such as video streaming, interactive gaming, and voice over LTE; and Optiva Wholesale Billing, a cloud-based solution that provides converged settlement and accurate interconnect billing. The company also offers Optiva Payment solutions that include various payment methods, including voucher and voucher less payment and top-up solutions. The company was founded in 1999 and is headquartered in Mississauga, Canada.
How the Company Makes MoneyOptiva Inc generates revenue primarily through the sale of its cloud-native software solutions and services to telecommunications companies worldwide. The key revenue streams include software licensing fees, subscription-based models for its cloud services, and ongoing support and maintenance contracts. Additionally, the company may engage in significant partnerships with telecom operators to customize its solutions to specific market needs, driving further revenue. Optiva's focus on innovation and cloud technology adoption plays a crucial role in attracting clients and sustaining its revenue growth.

Optiva Inc Financial Statement Overview

Summary
Optiva Inc is facing significant financial challenges, with declining revenues and substantial net losses. The negative stockholders' equity and high leverage raise concerns about financial stability. Despite positive operating cash flow, overall cash generation is weak, indicating the need for improved operational efficiency.
Income Statement
40
Negative
Optiva Inc has experienced declining revenues and profitability over recent periods. The TTM revenue decreased from the previous year, and the company recorded a negative net profit margin of -40.3% in TTM, indicating significant losses. Gross profit margin stands at 58.9% for TTM, reflecting reasonable cost control. However, negative EBIT and EBITDA margins highlight operational inefficiencies.
Balance Sheet
20
Very Negative
The balance sheet shows financial instability with negative stockholders' equity, indicating potential solvency issues. The debt-to-equity ratio is not calculable due to negative equity, but the high total debt levels relative to assets suggest substantial leverage. The equity ratio is negative, underscoring financial distress.
Cash Flow
55
Neutral
Cash flow shows some improvement with positive operating cash flow in TTM, although free cash flow growth is volatile. The operating cash flow to net income ratio is positive, indicating better cash management compared to net losses. However, free cash flow remains low relative to net income.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
47.11M47.51M61.78M65.24M75.92M96.71M
Gross Profit
27.75M30.61M44.59M50.36M56.31M65.22M
EBIT
-7.80M-1.26M11.56M30.53M-7.24M8.99M
EBITDA
-7.09M-162.00K13.51M16.58M-22.32M12.00M
Net Income Common Stockholders
-19.00M-12.26M709.00K18.50M-41.52M-11.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
11.24M19.64M18.39M29.59M17.66M31.75M
Total Assets
76.88M84.31M86.62M92.66M77.38M101.52M
Total Debt
101.67M101.35M87.72M86.99M86.34M66.35M
Net Debt
90.43M81.71M69.33M57.40M68.67M34.60M
Total Liabilities
122.15M123.60M112.70M127.72M156.81M137.14M
Stockholders Equity
-45.27M-39.29M-26.08M-35.06M-79.43M-35.62M
Cash FlowFree Cash Flow
1.11M-3.64M-1.09M1.59M-7.90M-1.81M
Operating Cash Flow
1.64M-3.25M-237.00K2.65M-7.90M-1.81M
Investing Cash Flow
-307.00K760.00K-2.01M-1.22M325.60K2.10M
Financing Cash Flow
-10.10M3.95M-8.78M10.89M-7.52M-3.41M

Optiva Inc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.67
Price Trends
50DMA
1.32
Negative
100DMA
2.92
Negative
200DMA
3.32
Negative
Market Momentum
MACD
-0.23
Negative
RSI
29.66
Positive
STOCH
84.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OPT, the sentiment is Negative. The current price of 0.67 is below the 20-day moving average (MA) of 0.80, below the 50-day MA of 1.32, and below the 200-day MA of 3.32, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 29.66 is Positive, neither overbought nor oversold. The STOCH value of 84.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:OPT.

Optiva Inc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$11.70B10.39-7.10%2.92%7.45%-8.42%
48
Neutral
C$7.99M20.16%79.84%70.95%
TSOPT
45
Neutral
C$4.16M36.35%4.13%-5.54%
45
Neutral
C$5.26M160.000.79%-74.44%
TSPKK
36
Underperform
C$5.57M-224.98%-85.42%51.62%
$3.67M-330.27%
$6.55M
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:OPT
Optiva Inc
0.67
-5.50
-89.14%
TSE:PKK
Tenet Fintech Group Inc.
0.02
-0.05
-71.43%
TSE:NBVA
Nubeva Technologies Ltd
0.08
-0.28
-77.78%
VENZF
Venzee Technologies
0.08
-0.06
-42.86%
FOBIF
Fobi AI
0.02
-0.03
-60.00%
TSE:EONX
Eonx Technologies
0.20
0.08
66.67%

Optiva Inc Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Optiva Inc. Wins MVNOs World AI & Analytics Excellence Award for AI-Driven BSS Platform
Positive
Jun 5, 2025

Optiva Inc. has been awarded the MVNOs World AI & Analytics Excellence Award for its AI-driven BSS platform, which is powered by Google’s Gemini Models. The platform is recognized for empowering MVNEs and MVNOs to launch and configure eSIM enablement and advanced product catalogs swiftly. This award highlights Optiva’s innovative partnerships and its role in enhancing agility, scalability, and customer-centric offerings in the competitive telecom market. The platform’s AI capabilities, such as churn prediction and dynamic pricing, allow operators to accelerate time-to-market and optimize growth strategies, ultimately improving customer experience and operational efficiency.

Product-Related AnnouncementsBusiness Operations and Strategy
Optiva Unveils Dynamic Pricing Solution to Revolutionize Telecom Monetization
Positive
May 29, 2025

Optiva Inc., in collaboration with PlektonLabs and Qeema, announced the INFINITY project, which will be showcased at DTW25 Ignite. This project introduces a dynamic pricing solution that allows telecom operators to adapt pricing in real-time based on network utilization and customer demand, thereby unlocking new revenue streams and optimizing network capacity. By leveraging APIs and AI-driven tools, INFINITY aims to transform telecom monetization, enabling operators to move beyond static pricing models and capitalize on advanced network features. This initiative is expected to enhance operators’ ability to meet evolving customer expectations and improve profitability.

Business Operations and StrategyFinancial Disclosures
Optiva Inc. Announces Q1 2025 Financial Results and Strategic Initiatives
Positive
May 13, 2025

Optiva Inc. reported its first quarter 2025 financial results, highlighting a revenue of $11.6 million and a gross margin of 64%. The company secured $6.3 million in total contract value bookings and introduced agentic AI technology, powered by Google’s Gemini models, into its BSS and charging solutions. This integration aims to improve operational efficiency and customer experience, earning industry recognition. Optiva is also navigating strategic alternatives concerning its outstanding Secured Notes, with key stakeholders committed to supporting the company through this process.

Business Operations and StrategyFinancial Disclosures
Optiva Inc. Achieves Key Business Milestones Amid Financial Losses in Q4 2024
Neutral
Mar 26, 2025

Optiva Inc. reported its fourth quarter 2024 financial results, highlighting a revenue of $12 million and a gross margin of 59%. Despite an adjusted EBITDA loss of $1.8 million, the company achieved significant business objectives, including customer retention and increased bookings. Optiva’s cloud-native solutions and AI integration have attracted new and existing customers, leading to successful upgrades and partnerships. The company is exploring strategic alternatives to optimize business outcomes, with a focus on refinancing options for its PIK Toggle Notes maturing in July 2025.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.